Discuss the causes and consequences of the 2007-2009 global financial crisis. What do you think prevented...

Discuss the causes and consequences of the 2007-2009 global financial crisis. What do you think prevented this financial crisis from becoming a depression? Financial regulation has undergone many changes in the wake of the crisis. Discuss some of these changes in regulation. What was the Canadian experience during the financial crisis? Why was Canada spared the worst of the financial crisis?

HERE ARE THE KEY PARTS OF YOUR PAPER:

1. Introduction/Background

Provide a brief description of the 2007-2009 global financial crisis.

2. Body

Detail the responses to the questions provided. Make sure you address all of the questions under each heading.

3. Summary and conclusion

Provide a concise summary of what you have discussed.

References

You will need at least five sources for this paper.

Cite all ideas, concepts, text, data that are not your own. If you make a statement, back it up with a reference!

Solutions

Expert Solution

Main causes of 2007-2009 global financial crises are:
1) Financial Industry was dirregulated which was the basic reason of crash of financial condition.
2) crisis caused of mortgage which were subprime.
3)Banks capital decreased.
4) Interest rates were high
5)stock market crashed heavily.
6) orders of manufacturing units slow down.
Consequences of 2007-2009 financial crises are-
1) complete destruction of financial system.
2)wages were depressed
3) political conditions were unstable
4)Banks were at complete strike and government had to pump them in billions.
High government spending and also cut on taxes prevented the recession getting turned into depression.
Change in financial regulation due to the crisis are:
1)banks starting funding to the short term market.
2) liquidity risks increased.banks and other financial institutions funds from collateral security.
canadian experience during the financial crisis was less worse.banks of canada had low central bank interest rates.debt equity ratio were less.rate of interests decreased.
canada spared the worst of the crisis as employment reduced,and inflation was at a moderate pace.

Rahul Sunny answered 1 year ago

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